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Draft G20 Communique Emphasizes Stability, Growth

  • RFE/RL

The draft statement seems to position the G20 close to those who have argued that recovery efforts should focus more on stimulating growth than on further austerity and cutbacks.

The draft statement seems to position the G20 close to those who have argued that recovery efforts should focus more on stimulating growth than on further austerity and cutbacks.

As G20 leaders begin formal discussions in Mexico, a draft communique is being circulated that urges Europe to take "all necessary measures to safeguard the integrity and stability" of the eurozone area.

In addition, the statement expresses a commitment to economic growth and job creation.

"We are committed to adopting all necessary policy measures to strengthen demand, support global growth, and restore confidence," the statement reads.

The draft statement seems to position the G20 close to those -- like French President Francois Hollande -- who have argued that recovery efforts should focus more on stimulating growth than on further austerity and cutbacks.

The statement adds that the leaders will announce a "coordinated Los Cabos Growth and Jobs Action Plan."

The International Monetary Fund (IMF) on June 18 issued a report backing the shift toward growth initiatives.

"Fostering growth is always important; in the euro area, it has become urgent," the report said.

The IMF also announced it has received pledges worth $456 billion for the proposed $430 billion anticrisis mechanism that will improve the fund's ability to bail out countries in the eurozone and elsewhere.

China pledged $43 billion, while Russia and India each pledged $10 billion.

Those announcements came after a minisummit of the BRICS (Brazil, Russia, India, China, and South Africa) group of emerging economies issued a declaration supporting the IMF initiative. However, the group added that its pledges were based on the assumption that developing countries would have a larger say in the way the money is spent.

Before the summit opened, U.S. President Barack Obama met with German Chancellor Angela Merkel.

The leaders reportedly agreed that additional steps toward European political integration are necessary to deal with the crisis.

White House spokesman Jim Carney said Obama was "encouraged" by the plans of European leaders to "stabilize the situation and support growth and jobs."

British Prime Minister David Cameron -- another advocate of austerity -- urged Europe to continue tightening its belt. He also warned against protectionist trade measures, saying that a free-trade agreement between the United States and the EU could "provide an enormous boost across the world."

G20 leaders are expected to adopt the declaration when the summit concludes on June 19.

With reporting by AP, AFP, and Reuters

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